Trademarks are an important way for a business owner to distinguish his goods from the goods of others in the marketplace. The right to use a trademark is tied to the scope of distribution of the mark in commerce. As distribution expands, an owner's rights to the mark also expand, from the local, to the national, to the international markets.

Common Law Rights

An owner of a unique mark that identifies goods in the marketplace has the exclusive rights to that mark once the mark is used in commerce. As long as the mark does not copy any other mark that is already in use, the owner's rights attach automatically, without him having to do anything other than use it. This automatic attachment of rights is based on English common law, and it is recognized in countries where the legal system has derived from that source. When disputes arise, however, it is sometimes difficult to establish who first used a mark in commerce without an accompanying registration of the mark with a government entity.

Scope of Distribution

The exclusive right to use a trademark is limited under the common law to the area of distribution of the goods it identifies. So, for example, if particular goods are distributed only locally, an owner's right extends only to the local market. If someone else in another state or country were to use the mark there, that person would hold the trademark in that area. This is why an owner of a unique mark is typically advised to use it in as wide a distribution area as possible to secure his rights.

Registrations

Registration of a mark with a government agency does not grant the registrant trademark rights. It simply provides notice to others of the owner's claim of rights in the mark. If the owner has to defend his rights, the registration can be used as proof of first use. There are a number of ways to register a trademark. It can be registered with a state, with the federal government through the U.S. Patent and Trademark Office and internationally with different countries and certain organizations that provide umbrella registrations for a group of countries.

Local vs. Global

A local trademark is an owner's exclusive right to use a mark in a local market. A trademark does not need to be registered to convey rights, but when people refer to a local trademark, they are oftentimes thinking of a mark that is registered with a state. Comparatively, there is no such thing as a global trademark. This is because, even if you used the mark in commerce in every market in the world, there are some countries that do not recognize common law trademark rights. A mark can be registered internationally in every country where the goods the mark identifies are distributed and that recognizes trademark rights. Some would label this a "global" trademark, though it would be a legal mischaracterization.

About the Author

Terry Masters has been writing for law firms, corporations and nonprofit organizations since 1995. Her online articles specialize in legal, business and finance topics. Masters holds a Juris Doctor from Howard University and a Bachelor of Science in business administration with a minor in finance from the University of Southern California.